TheCut, a technology platform designed for barbers to handle back-end operations, raised $4.5 million in new funding.
NextGen Venture Partners led the round and included Elevate Ventures, Singh Capital and Leadout Capital. The latest funding brings $5.35 million in total funding since the company was founded in 2016, founder Obi Omil Jr. told .
Omil and Kush Patel created the mobile app that provides information and reviews about barbers to potential clients, as well as manages appointments, mobile payments and pricing on the back end for barbers.
“Kush and I both had terrible experiences with haircuts, and decided to create an app to help find good barbers,” Omil said. “We found there were great barbers, but there was no way to find them. You can do a Google search, but it doesn’t list individual barbers. With Cut, you can search for a personal barber and find the address. Can put if they are very suitable for you and will not spoil your hair.”
The app enables barbers, perhaps for the first time, to keep a list of clients and notes and photos of hairstyles, as well as to track visits and expenses. By providing payments, barbers can also take advantage of digital trends to provide additional services and extras to bring in more revenue. On the client side, there is a search function with a list of barber profiles, photos of their work, ratings and reviews, service offerings and pricing.
Omil said there are 400,000 to 600,000 barbers in the US and it is one of the fastest growing markets. As a result, the new funding will be used to hire additional talent, market it and grow the business across the country.
“We’ve reached a point where we’re driving our progress and seeing the business collapsing, so we’re in hiring mode,” he said.
In fact, the company has generated over $500 million in revenue for barbers since its launch and is adding over 100,000 users each month. Moreover, the app handles an average of 1.5 million appointment bookings every month.
Next, Omil wants to build out some new features like a digital store and the ability to process more physical payments by rolling out card readers for in-person payments. TheCut will also focus on enabling barbers to build more personal relationships with their customers.
“We are creating software to make people the best version of themselves, in this case barbers,” he said. “The relationship with customers is an opportunity for barbers to make specific recommendations on products and create a beauty experience.”
As part of the investment, Ali Rosenthal, founder and managing partner of Leadout, joined the company’s board of directors. He said Omil and Patel are the founders that venture capitalists look for – experts in their markets and data-driven technologists.
“By the time we met him, he had done a lot,” Rosenthal said. “They’re building a passionate community and modern, tech-driven set of features that are tailored to the needs of their customers.”